Ithala Bank boss to stay

2009-11-04 00:00

KWAZULU-NATAL Economic Development and Tourism MEC Mike Mabuyakhulu said yesterday that Ithala Bank chief executive officer Sipho Shabalala will not be suspended. The bank falls under the auspices of the Economic Development Department.

Speaking to journalists at the provincial legislature, Mabuyakhulu said the investigation into Shabalala should be allowed to be completed and that a decision will be taken on the findings of the investigation, if the need arises.

He said it is “jumping the gun” for members of the legislature to call for Shabalala to be suspended.

Shabalala is being investigated by the SAPS Commercial Crimes Unit and members of the Hawks, for allegedly soliciting a donation of R1 million for the ANC. The alleged donation was linked to a R44,5 million state tender and was channelled through a Durban law firm.

On Monday, IFP member of the legislature Lionel Mtshali called for the suspension of Shabalala while the investigation into the allegations are being conducted.

Mabuyakhulu said that the probe of Shabalala is of him in his personal capacity and the allegations have nothing to do with Ithala Bank.

“Precautionary suspension is used when a person being investigated is suspected of using an institution.

“That person will be suspended so that they would not tamper with evidence.

“The investigation into Shabalala has got nothing to do with the institution he is heading,” said Mabuyakhulu.

Mabuyakhulu also told the economic development portfolio committee yesterday that Shabalala’s contract has been extended for two years to oversee the bank’s turnaround stategy.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.